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    Justify and calculate market price of Wal-Mart debt, equity

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    Attached is Walmart's 2009 annual report.

    Using the most recent Wal-Mart financial information, please justify/calculate the current market price of Wal-Mart's debt and equity, using two capital valuation models (one for debt and one for equity).

    Please show calculations that support the findings, including those involving rates of return.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:42 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/justify-calculate-market-price-wal-mart-debt-equity-293523

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    Solution:

    Value of debt:
    We have,
    Long term debt=$31,349
    Long term debt due within one year=$5,848

    Weighted average Interest rate on debt=4.4%
    Now,
    Yield to ...

    Solution Summary

    The expert justifies and calculates market price of Wal-Mart debt and equity.

    $2.19

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